Out-Law / Your Daily Need-To-Know

A French court has this week rejected an action raised in 1999 by the French financial company Transasia/Leonardo, which claimed that its trade mark was diluted because search engine requests for ‘Leonardo’ predominantly brought up the web pages of the non-profit arts and sciences group Association Leonardo. Transasia had argued that Association Leonardo should pay it $1 million in damages.

The case concerns the issue of so-called “initial interest confusion.” This is the split second confusion that occurs when users believe they are being taken to a certain web page when actually they are being taken to another page. This confusion becomes more controversial when trade marks are involved.

The three judges wrote that “The activities and services practised by the plaintiffs and the defendants are totally different, even if both parties use a common support, which is the internet.”

It appears that the case turned on the fact that there was no bad faith on the part of Association Leonardo – it does not compete with Transasia/Leonardo and did not appear to be trying to divert internet traffic from the financial company. Further, the name “Leonardo” produce many search engine results, unconnected with either company.

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